Q3 2013 Earnings Call
October 23, 2013
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We are making some forward looking statements today that use words like “outlook” or “target” or similar predictive words. Such forward looking statements involve risks and uncertainties detailed in our recent periodic reports as filed in accordance with the Securities and Exchange Act of 1934. These risks and uncertainties may cause actual results to differ materially from our statements today.
www.tupperwarebrands.com
Forward Looking Statements
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Record Sales +6% local currency
Adjusted EPS of $1.00, up 5% and 16% in local currency
Strong sales across emerging markets • Emerging markets drove strong growth ,+13% (69% of sales)
• Challenges in some developed markets, -8% (31% of sales)
Strong YTD Cash Flow* of $92M, $21M ahead of last year
Returned $132M to shareholders via $32M in dividends and $100M/1.21M shares repurchased
*Cash from operating activities net of investing activities
Q3 2013 Highlights
2013 Balanced Global Portfolio
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Europe, 25%
Asia Pacific, 34%
TW North America, 13%
Beauty North America, 12%
South America, 16%
Q3 Segment Sales as % of Total
Europe, 29%
Asia Pacific, 32%
TW North America, 13%
Beauty North America, 12%
South America, 14%
Q3 YTD Segment Sales as % of Total
Brand AND Channel
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Demonstrator
Unit Manager
Team Leader
Distributor
2.8 million Sales Force
Increased Local Currency Sales Despite Lower Active Sales Force
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Q3 2013
-6%
-4%
-2%
0%
2%
4%
6%
8%
Decrease inActive Sales
Force
Change inCalculation
Methodology
Mix Productivity Sales Increasein Local
Currency
+3pp
+2pp
+6%
-5%
+6pp
2 point impact from Q3 2012 change by Tupperware U.S. and Canada to measuring activity on a weekly rather than monthly basis
Positive 6 point impact from mix shifts, primarily away from Fuller Mexico that has a lower-than-average order size
Positive 3 point impact from productivity increases in individual markets: Significant price increases in South
America Switch from beauty to more
housewares products in Argentina Improved productivity in Asia, most
significantly in China and Indonesia
Total Company Sales +6% LC
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Q3 2013 (local currency)
Brazil +36%
Indonesia +31%
Venezuela +63% Malaysia/
Singapore +10%
Turkey +34%
India +3%
TW Mexico +4%
China +23%
Established Markets 31% of Sales -8% vs. 2012
Emerging Markets 69% of Sales
+13% vs. 2012
Germany -20% France
-13%
TW S. Africa -11%
TW U.S./Canada even
BeautiControl -20%
Fuller Mexico -11%
Argentina +39%
Italy +12%
Financial Highlights
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$0.83
$0.95 $1.00
$-
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
2011 2012 2013
GAAP EPS EPS Excluding Items*
Earnings Per Share
9 * GAAP to non-GAAP reconciliation provided in Appendix
(diluted)
Q3 Adjusted EPS Roll-Forward
Q3 2013
Includes Intangible Asset Impairment
$0.95 ($0.09)
($0.03)
$0.09
$0.07 $0.01
$1.00
$0.80
$0.85
$0.90
$0.95
$1.00
$1.05
2012 FX Int Exp Ops ShareImpact
Tax Rate 2013
Outlook
Q4 2013 Full-year 2013
USD Sales +2 – 4% +4%
GAAP EPS $1.75 - $1.80 $5.17 - $5.22
GAAP Pre-tax ROS 16.4 – 16.6% 13.6 %
Local Currency Sales +5 – 7% +6 - 7%
EPS, excluding items* $1.83 - $1.88 $5.45 - $5.50
Pre-tax ROS, excluding items 17.3 – 17.4% 14.3%
FX Impact on EPS comparison, excluding items
($0.06) ($0.19)
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* GAAP to non-GAAP reconciliation provided in Appendix
Uses of Cash
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Dividends
Targeted at 50% of Prior Full Year Diluted EPS
Without Items
Share Repurchases
• $75M in Q4 2013
• 2014 Share Repurchase Target to be Announced
in January
Invest in the business
Cash Flow
($50)
$0
$50
$100
$150
$200
$250
$300
2007 2008 2009 2010 2011 2012 2013*
Full Year Cash Flow Q3 YTD Cash Flow GAAP Net Income
GAAP Net Inc. includes impact of non-cash purchase accounting
asset impairment charges
* Full-year cash flow and GAAP net income shown at high end of guidance range provided on October 23, 2013.
Large VAT & FX hedge
contract payments
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(operating net of investing as reported)
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Brazil Overview
Market Facts
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• Sales +36% in local currency in full-year 2012 and +30% YTD 2013
• 200,000+ Sales Force sell both Tupperware and Beauty
• Selling Method: mainly one-on-one • Opportunity for productivity via
party training • Mega Distributors fulfill
non-stocking Distributors’ product needs
• Population of 190M with a third in the middle class*
• From 2000 to 2010, the share of households in the middle class grew from 24% to 29%**
• By 2020, 37% of the 60 million households will be middle class**
• Retail spending increasing at rapid rate
• Looking for premium quality products and getting familiar with international brands
*Source: “In Brazil, an Emergent Middle Class Takes Off,” The World Bank. Web. November 13, 2012
**Source: “Redefining Brazil’s Emerging Middle Class ,” BCG Perspectives. Web. July 4, 2013
The Facts Performance & The Model
Country Structure
Sales Office in Sao Paulo
20 Mega Distributors
Market Coverage
58 Distributors
58 Distributors
118 Team Leaders
8,000 Unit Managers
200,000+ Total Sales Force
Plant in Rio de Janeiro
Plant Sales Office
Brazilian Business Model
MEGA Distributors
The key factor of the success
Splitting of tasks and responsibilities
Responsible for
BUSINESS MANAGEMENT providing good quality
SERVICES TO THE SALES FORCE
Commission Distributors
100% Focused on
Sales Force Development (training, assemblies, recruiting, etc)
and
Sales Force Development (training, assemblies, recruiting, etc)
Commission Distributors
Builds Sales Organization
• Trains Sales Force
• Conducts Weekly Meetings
• Leadership Development Focus
Mega Distributors
Builds Sales Organization (like a commission distributor)
Services the Sales Force • Holds and manages
inventory • Processes orders and
collects on behalf of Commission Distributors
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Q & A
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Quality management teams around the world
Premium brands and products
Emerging markets
• Growth of middle class
• Penetration of under and unserved geographies
Established markets
• Execute better and more consistently
• Significant white space to drive growth
Grow our 2.8M sales force
Confidently Moving Forward
Appendix
Appendix: Non-GAAP Financial Measures Reconciliation
2011 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013* 2013*
Net Income (GAAP) $218.3 $193.0 $58.2 $76.3 $49.9 $92.5 $276.9
Adjustments:
Gains on disposal of assets including insurance recoveries (3.8) (7.9) (0.2) (0.8) (1.1)
Re-engineering and other restructuring costs 9.6 22.1 2.2 2.2 2.7 3.3 10.4
Impact of Venezuelan bolivar devaluation on balance sheet positions 3.9 0.3 4.2
Swap impairment and debt cost write-off 19.8
Acquired intangible asset amortization 2.9 2.1 0.3 0.3 1.2 2.9 4.8
Purchase accounting intangibles and goodwill impairment 36.1 76.9
Income tax impact of adjustments (9.6) (4.8) (0.2) (0.7) (0.5) (2.1) (3.5)
Net Income (Adjusted) $273.3 $281.4 $64.4 $78.2 $52.5 $96.6 $291.7
* High end of guidance rage
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Q3 Segment Sales Local Currency
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Q3 2013 Sales, +6% YTD 2013 Sales, +7%
Prior year amounts translated at current year foreign exchange rates. See appendix for U.S. dollar information.
$146.9
$205.1
$80.6 $73.8
$96.7
$-
$50.0
$100.0
$150.0
$200.0
$250.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
SouthAmerica
Q3 2011 Q3 2012 Q3 2013
$564.3
$614.5
$263.1 $241.2
$271.4
$-
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
SouthAmerica
YTD 2011 YTD 2012 YTD 2013
Q3 Segment Sales Reported
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Q3 2013 sales, +1% YTD 2013 Sales, +4%
On a Reported basis
$146.9
$205.1
$80.6 $73.8
$96.7
$-
$50.0
$100.0
$150.0
$200.0
$250.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
SouthAmerica
Q3 2011 Q3 2012 Q3 2013
$564.3
$614.5
$263.1 $241.2
$271.4
$-
$100.0
$200.0
$300.0
$400.0
$500.0
$600.0
$700.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
SouthAmerica
YTD 2011 YTD 2012 YTD 2013
Q3 Emerging Market Sales By Segment Local Currency
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Q3 2013 Emerging Market Sales +13%
Emerging/Established % Q3 2013 Emerging Market Sales, 69% of Total
Prior year amounts translated at current year foreign exchange rates See appendix for U.S. dollar information.
$58.5
$167.6
$39.5
$53.4
$96.7
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
South America
Q3 2011 Q3 2012 Q3 2013
40%
82%
49%
72%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
South America
Emerging Established
Q3 Emerging Market Sales By Segment Reported
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Q3 2013 Emerging Market Sales, +7%
Emerging/Established %
On a reported basis
$58.5
$167.6
$39.5
$53.4
$96.7
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
South America
Q3 2011 Q3 2012 Q3 2013
40%
82%
49%
72%
100%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Europe Asia Pacific TW NorthAmerica
Beauty NorthAmerica
South America
Emerging Established
* As of October 23, 2013. Specific guidance for 2014 to be provided in January 2014 fourth quarter 2013 earnings release.
Double Digit EPS Growth driven by:
• Local Currency Sales: +6% to 8% • Emerging markets about 10%
• Established markets low single digit
• Pre-Tax ROS, excluding items: 50 bps
improvement per year into the mid- to high-teens
• Share repurchases
Long Range Outlook*
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Q3 2013 Earnings Call
October 23, 2013